Save Money on Car Insurance

Once you've paid your mortgage and car loan, another large monthly expense is car insurance. This is one area where shopping for the best rates, researching discounts, and planning ahead can save you money.

Buying a new car is an expensive proposition. First, there's the monthly cost of the loan; then there's the expense of having to insure it. If your driving record is clean, you may feel that you're throwing money away. However, not only is car insurance required by law, it's essential to have. Even the safest drivers can find themselves in an accident. Considering the expense of your monthly auto loan, it would be nice if auto insurance were as inexpensive as possible. Here are several ideas that can minimize that expense.

Be defensive

Nothing will make your insurance premium go up faster than accidents, speeding tickets, and other driving misconduct. Slow down and drive defensively. Don't forget to buckle up-not only does it save lives, but the police are on the lookout for violators. If you must talk on the phone, always go hands free. The best drivers are the ones who receive the best rates.

Raise and reduce

Requesting changes to your car insurance may result in immediate savings. Just by increasing your deductible to $500 or $1,000, for example, you could significantly reduce your rates. Another way to save money is to lower your liability or collision coverage. If your life has recently changed, and you've experienced a significant adjustment in the number of miles that you drive each day, you may be eligible for a rate reduction. This would apply if you've always driven to work, but have now decided to take the train. Call your insurance company and discuss this with them-not only will you save on gas, but you could reduce your auto insurance premiums, as well.

Don't discount discounts

Ask your car insurance company about discounts. If your teenager has a B average or higher, for example, you may be entitled to a discount to insure him. A defensive driving course could also reduce your rates. Professional organizations, such as the AARP or AAA, may also entitle you to lower premiums.

Insurer advantages

Because there can be a huge difference in insurance premiums from one type of vehicle to another, call your insurance company before you sign on the dotted line of that car loan. What's more, you may be able to cut your rates by bundling all your insurance policies together. Speak to your insurer to see if you'd save money by adding your car to your homeowner policy.

After the expense of buying your car, insurance is the highest cost that you'll incur. There are several ways for you to save money. By shopping around, requesting discounts, and being a good driver, you'll be taking a shortcut to higher savings.